Expansion Capital
In the private equity market this is referred to as capital required by an established company to fund the expansion of the business. This term is often used interchangeably with development capital. Funds may be used to finance increased production capacity, product development, provide additional working capital or for marketing. Capital provided for rescue/turnaround situations […]
Escrow
A temporary holding place for earnings of a private equity fund. Typically, the fund will require a private equity manager to place all, or a portion of its carried interest in escrow until certain performance milestones are met or the fund is terminated.
Equity Ownership Structure
A schedule of who owns what type of equity of a specific investment. There are a variety of equity instruments available to owners of a company. These include preferred stock, common equity, equity options, equity warrants and convertible debt (that can be converted into equity).
Equity Kicker
A transaction in which a small number of shares or warrants are added to what is primarily a debt financing.